Water Use for Oil and Gas Activity 2013 Annual Report PURPOSE ROLE OF THE BC OIL AND GAS COMMISSION...... 4 HOW WATER IS USED 5 TABLE OF The purpose of the 2013 Annual Report on Water Use for Oil HOW WATER IS ACCESSED 5 and Gas Activity is to present data and information on water COMMISSION AUTHORITY FOR WATER 6 TOOLS FOR WATER MANAGEMENT 7 CONTENTS approvals, water withdrawal and water use related to the oil and gas industry, including hydraulic fracturing. EXECUTIVE SUMMARY - 2013 SNAPSHOT...... 8 TABLE 1 - WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES IN 2013 8 This report contains short-term water use data from the FIGURE 1 - COMPARISON OF ANNUAL RUNOFF, WATER APPROVALS AND VOLUMES REPORTED 2013 calendar year, including the cumulative volume of WITHDRAWN IN 2013 9 water approved for use and the volume reported as actually TABLE 2 - QUARTERLY WATER WITHDRAWALS FROM SECTION 8 APPROVALS, 2011-2013 9 used by permit holders. It includes similar data on water SECTION 8 WATER APPROVALS: SHORT-TERM WATER USE...... 10 licences in northeast , which are valid TABLE 3 - SHORT-TERM WATER USE APPROVALS AND WITHDRAWALS AS PERCENTAGE for periods greater than two years. Information on water OF MEAN ANNUAL RUNOFF IN 2013 11 source wells, a well drilled to obtain water for the purpose TABLE 4 - SECTION 8 WATER SOURCE TYPES IN 2013 12 of injection into underground formations to enhance oil TABLE 5 - 2013 SECTION 8 WATER APPROVALS AND USE DATA ORGANIZED BY COMPANY 13 and natural gas recovery, is included in the report. Finally, WATER LICENCES: LONG-TERM WATER USE...... 14 details on the volume of water used specifically for hydraulic FLOW THROUGH AND CONSUMPTIVE WATER LICENCES 14 fracturing are summarized. TABLE 6 - WATER LICENCES ACTIVE IN 2013 AND TRANSFERRED TO THE RESPONSIBILITY OF THE COMMISSION 15 WATER SOURCE WELLS...... 16 TABLE 7 - COMPARISON OF WATER SOURCE WELL WITHDRAWALS FOR 2013 16 TABLE 8 - REPORTED WATER SOURCE WELL WITHDRAWALS FOR 2013 17 HYDRAULIC FRACTURING ...... 18 Previous annual water reports and quarterly updates are available on the Commission’s website at: FIGURE 2 - SOURCES FOR ACQUISITION OF WATER USED FOR HYDRAULIC FRACTURING 18 http://www.bcogc.ca/public-zone/water-information TABLE 9 - WATER USED FOR HYDRAULIC FRACTURING IN 2012 AND 2013 19 For specific questions or enquiries COMMISSION INNOVATION ...... 20 regarding this data, please contact: NORTHEAST WATER TOOL (NEWT) 20 Jonathan Boyd WATER INFORMATION PORTAL 21 Hydrology Technician [email protected] GLOSSARY ...... 22 APPENDICES ...... 23 APPENDIX 1: MAP - ACTIVE WATER SOURCE WELLS IN 2013 23 APPENDIX 2: TABLE - WATER APPROVAL AND USE ORGANIZED BY OGC WATER MANAGEMENT BASIN IN 2013 24

2 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 3 Role of the

BC OIL AND GAS COMMISSION HOW WATER IS USED HOW WATER IS ACCESSED Water is used for various purposes in the oil and gas industry. There are different ways the oil and gas industry in British Columbia may access water. Some The BC Oil and Gas Commission (Commission) is LIARD BASIN CORDOVA EMBAYMENT Commission Office Locations The largest use of water for oil and gas methods are managed through provincial legislation, including: a single-window Crown corporation that regulates oil Throughout B.C. activities is for hydraulic fracturing. BASIN • Water licences issued under the Water Act. The Commission has staff designated and gas activity in the Province of British Columbia. fort nelson as Regional Water Managers with authority for issuing and administering long-term water licences. The Commission regulates industry by way of the MONTNEY commission o ce locations However, water is used for other purposes, such as: administration of the Oil and Gas Activities Act • Short-term surface water use or diversion approvals issued under northeast B.C. (OGAA), the Petroleum and Natural Gas (PNG) Act, fort st. john natural resource plays Section 8 of the Water Act. Short-term water use is administered by the Commission. and associated regulations. Specified enactments Seismic or geophysical exploration provide the Commission additional authorities to • Water source wells authorized by the Commission under OGAA. Water source permit oil and gas activities related to forestry, heritage wells are a specific type of well where the water withdrawn is intended for the purpose conservation, roads, land and water use, and other Drilling of injection into an underground formation to enhance oil or natural gas recovery. natural resources. This consolidated authority allows • Flowback water that returns to the surface after being injected for hydraulic the Commission to monitor activity in a comprehensive fracturing. and effective manner where oil and gas activities Machine washing occur, including on Crown land, privately held land, • Produced water that flows to the surface as a by-product of oil and gas production. and the Agricultural Land Reserve. The oil and gas industry can also access water by means currently outside of regulatory oversight: The Commission is responsible for reviewing, kelowna Dust control assessing, and making decisions on water authorizations from both surface and subsurface water sources. The Commission has the expertise victoria Water floods (to enhance oil recovery) The Commission’s workforce operates out of and tools to make informed water allocation decisions; Fort Nelson, Fort St. John, Dawson Creek, protecting and maintaining environmental and Kelowna and Victoria, with the largest number of • Private agreements can be made with landowners or others who have a source of surface community water needs are its first priorities. employees concentrated in Fort St. John, the heart Ice road freezing water supply such as a dugout or a groundwater well. The Commission manages water use with a specific focus of oil and gas activity in the province. The offices Where water authorization is granted, the Commission on environmental values at every opportunity, monitoring in Fort Nelson and Dawson Creek ensure the • Groundwater wells for oil and gas use where the activity does not involve water becomes responsible for regulating the permissions by the water withdrawal and enforcing compliance with Commission’s presence in communities of the Horn Hydrostatic testing of pipelines injection (hydraulic fracturing) into the subsurface. These purposes include road maintenance, which oil and gas companies operate. applicable legislation where required. River Basin and Montney gas plays respectively. geophysical exploration, and other possible uses.

4 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 5 COMMISSION AUTHORITY FOR WATER WATER USE REPORTING TOOLS FOR WATER MANAGEMENT

T he Water Act is the primary provincial statute Approvals under Section 8 authorize the diversion and administer water licences, generally for terms of five years For surface water sources managed under short-term The Commission manages water approvals and use with regulating water resources in B.C. Currently, only surface use of water for a term not exceeding two years. Short- or more, to the oil and gas sector. water use approvals, operators must report monthly water specific focus on environmental values. water in a “stream” is vested to the Crown for allocation term water use approvals are typically used by industry withdrawals from each approved withdrawal location on through the Water Act. A “stream” includes a natural during the exploration phase of development of natural As well as regulating surface water used for oil and gas a quarterly basis to the Commission. Companies failing Methods and tools include: watercourse or source of water supply, whether usually gas or oil leases. Upon expiry, subsequent short-term activities, the Commission regulates aspects of subsurface to report water usage are referred to the Commission’s water resources. OGAA provides the Commission containing water or not, and a lake, river, creek, spring, water use approvals can be issued to applicants should Compliance and Enforcement team. The role of this team • Seismic or geophysical exploration. ravine, swamp and gulch. further use of a short-term nature be required. authority for groundwater management of water source is to investigate non-compliance, ensure operators comply wells. A water source well is used to acquire water for with laws and permit conditions, and conduct follow-up • The development of OGC Watershed Management Basins for northeast Surface water use under the Water Act is regulated by the In March 2013, specific Commission staff were injection to enhance oil or gas recovery. Water-related inspections. B.C. (derived from the Ministry of Environment’s Freshwater Atlas base Commission through two processes: designated as Regional Water Managers under the definitions are available on page 22. map). • Section 8 of the Water Act allows for the Water Act, giving the Commission authority to issue and • The review of water use applications on a watershed basis with an The Commission has natural resource specialists trained issuance of permits for short-term water use, for MANDATORY understanding of cumulative effects to ensure withdrawals do not exceed to review and adjudicate applications for water use a maximum 24 month period. WATER USE environmental limits and environmental flows are maintained. associated with oil and gas activities. The water used REPORTING • The production of publicly available reports on water approvals and use. • Part 2 of the Water Act allows for the issuance Regional Water Managers by industry is carefully monitored by knowledgeable Short-term Approvals of water licences, generally for terms of 5+ years. and hydrologists serve to geologists, hydrologists, hydrogeologists and engineers • The management of special or unique situations, and the ability to take with the Commission. These specialists have expertise Water Source protect and conserve water Wells action if necessary, such as suspending oil and gas water use during the Through OGAA, the Commission has authority to issue in northeast B.C.’s water resources and apply scientific 2010 and 2012 summer droughts in northeast B.C. water use permits under Section 8 of the Water Act to resources and further public and technical rigour to manage and protect the province’s • The NorthEast Water Tool, a GIS-based hydrology decision-support tool. manage short-term water use by the oil and gas industry. knowledge surrounding oil water resources. • The development of a Water Information Portal to display available and gas water use through For water production from water source wells, operators are also required to report water withdrawal data on a surface water and groundwater quantity and quality data throughout information sharing and monthly basis. northeast B.C. transparent reporting. • Cooperation with water stewardship staff from FLNRO to ensure Since January 2014 the Commission has required decisions are fully informed and coordinated. mandatory reporting of water licences for oil and gas use. This change is a result of the Commission taking over • The transparent publication of all chemicals included in fracturing administration of oil and gas water use licences. In the fluids and the total amount of water injected for hydraulic fracturing on past, most water use authorized by way of a water licence FracFocus.ca. did not have a requirement for mandatory reporting.

6 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 7 EXECUTIVE SUMMARY - 2013 SNAPSHOT FIGURE 1: COMPARISON OF ANNUAL RUNOFF, WATER APPROVALS AND VOLUMES REPORTED WITHDRAWN IN 2013

In 2013, there were 50 companies with 381 active Section availability across northeast B.C., was released for use in Knowledge (SCEK) Fund, has recently developed a 8 approvals from 1,489 points-of-diversion (Table 1). 2012. NEWT was acknowledged with a Premier’s Award map-based Water Information Portal, to provide public This body of water represents 120.6 billion cubic metres - the average The total annual volume of water approved for withdrawal for innovation in 2013. access to a wide range of water-related data and runoff replenished annually in northeast B.C. river basins, based on was 19,423,842 m3, which represents 0.016 per cent of information in northeast B.C. decades of stream flow measurement by the Water Survey of . the total mean annual runoff in northeast B.C. The total The Commission, in partnership with FLNRO, Geoscience volume of extracted water reported was 2,896,865 m3, BC and the Science and Community Environmental which corresponded to 0.002 per cent of the total mean annual runoff in northeast B.C. (Figure 1). TABLE 1: This cube represents WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES IN 2013 35,650,353 million A total of 24 water licences associated with oil and gas cubic metres - the Companies with Active Section 8 Approvals 50 activities, comprising 38 points-of-diversion, were active total volume of water Active Section 8s 381 in 2013. The total licenced approval of water use for 2013 authorized for use 3 SHORT-TERM was 16,226,511 m , which accounts for 0.013 per cent of Approved Withdrawal locations for Section 8s 1,489 under Section 8 the mean annual runoff. Data for actual water use was Volume Available for Use for Section 8s (m3) 19,423,842 This cube represents 0.002 approvals and water not available for most water licences for 2013, however, Volume Reported Withdrawn for Section 8s (m3) 2,896,865 per cent of annual runoff, the licences in 2013. the water licences were amended to require mandatory amount reported withdrawn for This volume is less reporting of water use, beginning January 2014. Companies with Active Water Licences 10 WATER Active Water Licences 24 Section 8s in 2013. than 0.03 per cent of mean annual runoff in Eight companies reported withdrawing 683,528 m3 of LICENCE Licenced Withdrawal Locations 38 3 northeast B.C. river water from 31 water source wells in 2013. Volume Available for Use for Water Licence (m ) 16,226,511 basins.

3 Companies Reporting Water Source Wells 8 A total of 5,341,635 m of water was used by 31 WATER companies for hydraulic fracturing of 433 wells in 2013. Water Source Wells 31 Figure 1 provides a comparison of the average volume SOURCE WELLS TABLE 2 - QUARTERLY WATER WITHDRAWALS FROM SECTION 8 APPROVALS, 2011 - 2013 The majority of wells hydraulically fractured were in the Volume of Water Extracted from Water Source Wells (m3) 683,528 of annual runoff in northeast B.C. river basins against Montney Play (North and Heritage). Section 8 and licenced water volumes approved for use, Companies that Hydraulically Fractured Wells 31 Q1 Q2 Q3 Q4 SUM HYDRAULIC and actual volumes reported withdrawn. The NorthEast Water Tool (NEWT), a GIS-based hydrology Hydraulically Fractured Wells 433 2011 782,388 662,767 1,266,317 1,100,613 3,812,085 FRACTURING 3 decision support tool that provides guidance on water Volume of Water Injected for Hydraulic Fracturing (m ) 5,341,635 Table 2 provides comparative data on total volumes 2012 1,345,289 982,376 1,088,192 340,607 3,756,464 withdrawn each quarter by way of Section 8 approvals 2013 1,061,417 482,054 605,408 747,986 2,896,865 for the years 2011 through 2013. Average 1,063,031 709,066 986,639 729,735 3,488,471

8 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 9 SECTION 8 WATER APPROVALS

SHORT-TERM WATER USE for a period not exceeding 24 months (a change from the be submitted to better manage the water supply in (14.9 per cent of the approved volume). Section 8 water previous maximum term of 12 months). northeast B.C. The Water Supply/Demand Analysis is withdrawals for 2013 were slightly less than withdrawals in a report that provides detail on the water demand, a 2011 (3,812,085 m3) and 2012 (3,756,464 m3) as shown in OGAA provides authority to the Commission to issue In March 2011, the Commission issued Directive 2011-02 Section 8”, the cumulative total for each approved basin The majority of Section 8 approvals issued by the rationale to support the volume of water requested, and Table 2 on page 9. short-term water use permits under Section 8 of the Water requiring oil and gas companies holding Section 8 water is submitted. Basin Section 8s are further described in Commission will continue to be for a term not exceeding detail on the hydrology of the applicable water body Act: use approvals to submit monthly water withdrawal data to the glossary on page 22. 12 months, including for hydraulic fracturing. However, or water bodies. The rationale and data is used by the In most river basins in northeast B.C., the total approved WATER ACT the Commission on a quarterly basis. Water withdrawal some may be issued for a term of up to 24 months - these Commission’s decision-maker, as well as providing short-term water use was a small fraction of the mean data is reported for each approved withdrawal location In April 2013 the Province of British Columbia brought generally include approvals for geophysical activity, winter valuable context for other parties, such as . annual runoff (Appendix 2, page 24). The basins with the Short-term use of water (Section 8) (lake, stream, water source dugout, etc.), commonly into force a 2010 amendment to the Water Act to allow road construction, or water source dugouts. largest total approved volumes as a percentage of mean known as a point-of-diversion. In the case of a “Basin short-term water use approvals (Section 8) to be issued In 2013, there were 50 companies with 381 active annual runoff for 2013 are listed in Table 3, below. 8 (1) If diversion or use of water is required In addition, Section 8 applications for greater than Section 8 approvals from 1,489 points-of-diversion for a term not exceeding 24 months, the 200 m3/day, or greater than 10,000 m3/year, or for a (Table 1 on page 8). The total annual volume of water For all the remaining basins, the approved short-term comptroller or a regional water manager purpose of Oil Field Injection (which includes hydraulic approved for withdrawal was 19,423,842 m3. The total water use corresponded to less than 0.20 per cent of may, without issuing a licence, grant an fracturing), require a Water Supply/Demand Analysis to volume of extracted water reported was 2,896,865 m3 mean annual runoff. approval in writing, approving the diversion or use, or both, of the water on the conditions BASINS WITH THE LARGEST TOTAL APPROVED VOLUMES AS BASINS WITH THE LARGEST WATER WITHDRAWAL AS the comptroller or regional water manager A PERCENTAGE OF MEAN ANNUAL RUNOFF A PERCENTAGE OF MEAN ANNUAL RUNOFF considers advisable. TABLE 3: OGC WATER OGC WATER MANAGEMENT BASIN PERCENTAGE MANAGEMENT BASIN PERCENTAGE (2) Even though a licence has not been issued, SHORT-TERM a person is not prohibited from diverting or WATER USE East Kiskatinaw 0.71 using water in accordance with an approval The majority of Section 8 APPROVALS AND Middle Kiskatinaw 0.43 Cameron River 0.09 given under this section or in accordance with WITHDRAWALS Kiskatinaw River Total 0.40 Upper 0.09 approvals issued by the AS A PERCENTAGE the regulations. Cameron River 0.35 West Kiskatinaw 0.05 Commission will continue to OF MEAN ANNUAL Kiwigana River 0.24 Middle Sikanni Chief River Total 0.04 (3) The provisions respecting a licence, except be for a term not exceeding RUNOFF IN 2013 Middle Kiskatinaw River 0.04 12 months, including for Capot-Blanc Creek 0.24 Section 7, apply to a diversion or use of water Sahdoanah River 0.24 East Kiskatinaw River 0.04 under an approval under subsection (1) of this hydraulic fracturing. West Kiskatinaw 0.20 Upper 0.04 section or under the regulations.

10 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 11 TABLE 5 - 2013 SECTION 8 WATER APPROVALS AND USE DATA ORGANIZED BY COMPANY

NUMBER OF TOTAL TOTAL NUMBER OF TOTAL TOTAL APPROVED VOLUME VOLUME APPROVED VOLUME VOLUME WITHDRAWAL APPROVED WITHDRAWN WITHDRAWAL APPROVED WITHDRAWN Actual water withdrawal in individual basins is a small The cumulative total of all Section 8 water approvals in volume of water withdrawn was from rivers at COMPANY LOCATIONS (m3) (m3) COMPANY LOCATIONS (m3) (m3) fraction of the approved water use. The basins with the 2013 represents 0.016 per cent of the mean annual runoff. 1,978,444 m3 (68.3 per cent), compared to water largest actual volume of water withdrawn as a percentage The cumulative total of actual water withdrawals in 2013 source dugouts at 854,161 m3 (29.5 per cent). Apache Canada Ltd. 93 1,306,009 109,714 Northpoint Energy Ltd. 1 967 0 of mean annual runoff for 2013 are listed in Table 3 on represents 0.002 per cent of the mean annual runoff Arc Resources Ltd. 10 110,804 125 Nova Gas Transmission Ltd. 17 89,473 0 page 11. (Figure 1, page 9). A summary of Section 8 data for individual oil and gas Arcis Seismic Solutions Corp. 6 3,190 739 Nuvista Energy Ltd. 13 31,844 4,220 companies is shown in Table 5 on page 13. Artek Exploration Ltd. 2 1,512 0 Olympic Seismic Ltd. 4 20,000 0 For all the remaining basins, the actual volume of water In 2013, water source dugouts comprised the most Baytex Energy Ltd. 6 17,038 0 Pacific Trail Pipelines Mgmt Inc. 22 5,000 3 withdrawn corresponded to less than 0.04 per cent of points-of-diversion at 1,057 (71.0 per cent) as shown in In 2013, Encana Corporation had the most active points- Black Swan Energy Ltd. 5 102,149 47,443 Painted Pony Petroleum Ltd. 3 234,850 3,126 mean annual runoff. Table 4. Rivers accounted for 216 (14.5 per cent) points- of-diversion at 290 (19.5 per cent). Canadian Natural Bonavista Energy Corp. 3 9,150 2,308 Paramount Resources Ltd. 59 485,617 32,184 of-diversion. Water source dugouts had the highest annual Resources Limited (192 points-of-diversion; 12.9 Canadian Natural Resources Ltd. 192 1,454,766 310,512 Pengrowth Energy Corp. 14 69,900 0 The mean annual runoff for the various rivers and streams approval at 10,437,505 m3 (53.8 per cent), while rivers per cent) and ConocoPhillips Canada Operations Ltd. / Canbriam Energy Inc. 3 206,472 0 Penn West Petroleum Ltd. 77 433,404 19,978 across northeast B.C. is about 120.6 billion m3 (based on had the second highest with an approval volume of ConocoPhillips Canada Resources Corp (186 points-of- Carmel Bay Exploration Ltd. 2 19,000 2,514 Plateau Pipe Line Ltd. 1 1,100 0 data collected by the Water Survey of Canada). 7,468,564 m3 (38.5 per cent). Conversely, the highest diversion, 12.5 per cent) had second and third highest Challenger Geophysical Ltd. 1 5,000 0 Polar Star Canadian Oil and Gas, Inc. 6 32,200 0 number of water withdrawal locations. Coastal Gaslink Pipeline Ltd. 27 8,807 232 Prince Rupert Gas Transmission Ltd. 5 600 0 ConocoPhillips Canada Operations Ltd. 182 1,703,219 28,441 Progress Energy Canada Ltd. 71 5,119,157 1,210,801 Progress Energy Canada had the greatest total ConocoPhillips Canada Resources Corp. 4 6,675 1,587 Quicksilver Resources Canada Ltd. 5 460,079 0 TABLE 4: SECTION 8 WATER SOURCE TYPES IN 2013 approval volume at 5,119,157 m3 (26.4 per cent). Delphi Energy Corp. 1 250 0 Saguaro Resources Ltd. 3 300,000 0 Encana Corporation (3,246,864 m3, 16.7 per cent) and Devon Canada Corp. 37 93,433 27,097 Shell Canada Limited 33 610,542 14,080 NUMBER OF APPROVED WATER WATER WITHDRAWAL APPROVAL WITHDRAWAL ConocoPhillips Canada Operations Ltd. / ConocoPhillips Devon NEC Corp. 17 59,037 14,163 SMR Oil & Gas Ltd. 3 7,655 0 LOCATIONS % VOLUME (m3) % VOLUME (m3) % Canada Resources Corp (1,709,894 m3, 8.8 per cent) had Divestco Inc. 1 5,000 0 Storm Resources Ltd. 13 59,310 0 the second and third highest Section 8 approval volume. Encana Corp. 290 3,246,864 828,667 STX Energy Canada Inc. 17 70,600 0 STREAM/RIVER 216 14.5 7,468,564 38.5 1,978,444 68.3 Endurance B.C. Gas Ltd. 7 74,200 18,617 Suncor Energy Inc. 9 27,429 2,678 LAKE 97 6.5 563,635 2.9 41,000 1.4 Three companies, Progress Energy Canada Ltd. Enerplus Corp. 18 35,570 6,582 Talisman Energy Inc. 13 26,150 9,929 WATER SOURCE DOUGOUT 1,057 71.0 10,437,505 53.8 854,161 29.5 (1,210,801 m3, 41.8 per cent), Encana Corporation Harvest Operations Corp. 16 94,378 28,352 Taqa North Ltd. 67 533,890 3,114 (828,667 m3, 28.6 per cent) and Canadian Natural Husky Oil Operations Ltd. 25 164,232 35,369 Tourmaline Oil Corp. 3 315,000 0 BASIN 74 5.0 352,677 1.8 16,235 0.6 Resources Limited (310,512 m3, 10.7 per cent) accounted Imperial Oil Resources Ltd. 7 672,727 4,285 UGR Blair Creek Ltd. 1 405 0 OTHER 45 3.0 601,460 3.1 7,025 0.2 for about four-fifths of all water extracted under Section 8 Ish Energy Ltd. 23 301,396 0 Westcoast Energy Inc. 10 210,620 384 approvals. Nexen Energy Ulc 32 549,875 128,911 Yoho Resources Inc. 9 27,300 710 GRAND TOTAL 1,489 100.0 19,423,842 100.0 2,896,865 100.0 GRAND TOTAL 1,489 19,423,842 2,896,865

12 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 13 PRIORITY LICENCE EXPIRY NUMBER OGC WATER DAILY ANNUAL LICENCE DATE STATUS DATE DATE OF POINTS OF MANAGEMENT APPROVAL APPROVAL PERIOD NUMBER LICENCEE (yyyy.mm.dd) (yyyy.mm.dd) (yyyy.mm.dd) SOURCE DIVERSION BASIN (m3/day) (m3/yr) PURPOSE OF USE TABLE 6: OIL AND GAS RELATED WATER LICENCES ACTIVE IN 2013 AND TRANSFERRED TO THE C030560 CNRL 1963.09.19 1966.01.03 N/A 1 Doig River 3,181 1,160,900 Oil Field Injection (OFI) Whole Year WATER LICENCES C032839 CNRL 1966.10.07 1967.12.15 N/A Doig River 1 Doig River 3,181 1,160,900 OFI Whole Year RESPONSIBILITY OF THE COMMISSION C033691 CNRL 1967.06.22 1968.10.01 N/A Doig River 1 Doig River N/A N/A OFI Whole Year LONG-TERM WATER USE C033692 CNRL 1967.06.22 1968.10.01 N/A Doig River 1 Doig River N/A N/A Storage-Non Power Whole Year C111413 Shell Canada 1996.08.20 1998.03.25 2027.04.28 Kiskatinaw River 1 Lower Kiskatinaw Rvr 1,080 400,000 “OFI; Storage-Non Power” Whole Year Energy C112155 Imperial Oil 1970.09.04 1998.03.18 N/A 1 Lower Peace River 5,000 1,825,000 OFI Whole Year In 2013, four water licences, representing 5 points-of- There are currently 377 water licences, representing In March 2013, FLNRO designated specific Resources Ltd Commission staff as Regional Water Managers under diversion, expired. Further details on active oil and gas 783 points-of-diversion currently held by other parties C113187 CNRL 1970.01.08 1998.08.26 N/A Inga Lake & 2 Cache Creek 507 185,000 “OFI; Storage-Non Power” Whole Year the Water Act, giving them authority to issue and related water licences can be found in Table 6. for a variety of water use purposes, including domestic Coplin Creek administer water licences for the oil and gas sector. and municipal water supply, pulp mills, industrial, forestry, C113545 Tervita Corp 1998.07.16 1999.06.23 N/A Rudiger One Lake & 2 Blueberry River 100 15,100 Industrial (drilling oil and gas Nov 1 - Mar 31 Rudiger Two Lake activity) In total, 24 active water licences, comprising 38 points- agriculture, and a number of others. These non-oil C117683 TAQA North Ltd 1964.09.16 2002.10.31 N/A Hogg Creek 1 Lower Peace River 892,469 “OFI; Storage-Non Power” Whole Year of-diversion were transferred to the Commission (Table and gas water licences authorize the withdrawal of C122399 Encana Corp 2006.11.27 2007.03.13 N/A Tupper River 1 River 230 2,000 Industrial (processing) Apr 1 - Dec 31 1 on page 8). The total licenced approval of water use 184,677,818 m3/yr (excluding hydropower generation C122423 Encana Corp 2006.12.13 2007.03.13 N/A Steeprock Creek 1 115 2,500 Industrial (processing) Whole Year for 2013 was 16,226,511 m3, which accounts for 0.014 and storage). C122523 Encana Corp 2007.01.25 2008.11.27 2013.11.27 Twin Lakes (Upper) 2 Smoky River 1,000 25,000 Industrial Whole Year per cent of the mean annual runoff (Appendix 2, page & BP-48 Creek (mining equipment) C122524 Encana Corp 2007.01.25 2008.11.03 2013.11.03 Wasp Lake 1 Murray River 1,000 8,500 Industrial (mining equipment) Nov 1 - Apr 30 A breakdown of licenced water use in northeast 24). C123577 Encana Corp 2007.03.16 2008.06.27 2013.06.27 Two Island Lake 1 Kiwigana River 2,600 100,000 Industrial (Mining) Whole Year Flow through surface water British Columbia as at October 2013 is shown below. C123616 Devon 2008.02.12 2008.07.04 2013.07.04 Tsea River 1 Tsea River various 50,976 OFI Apr 16 - Nov 30: Mandatory reporting of water use under water licences Flow through surface water allocations do not have water Canada 0.0058m3/s & Dec 1 - allocations do not have water 3 has generally not been a requirement. As a result, removed from the system; the water is used in place and Corp Apr 15: 0.0012 m /s removed from the system; the water C125903 Encana Corp 2007.04.02 2011.02.18 2016.12.31 Lower Trail Lake, 3 Tsea River 500 40,000 “OFI; Mining Equipment; Whole Year this report does not include data on the actual water remains within the specific river or lake that is the licence’s is used in place, and remains within Tightfit Lake, and Road Maintenance” use associated with the licences. Since assuming source. Consumptive surface water allocations remove Trail Lake responsibility for the water licences, the Commission the specific river or lake that is the water from the system and the water is not returned. C125925 Encana Corp 2007.04.02 2011.02.18 2016.12.31 Yesshadle Creek 2 Middle Petitot Rvr 250 26,666 “OFI; Mining Equipment; Whole Year amended the licences to require water use reporting licence’s source. Road Maintenance” and will begin reporting data on actual use in the first C125934 Encana Corp 2007.03.16 2011.02.18 2016.12.31 5 ZZ Lakes 5 Kiwigana 500 42,500 “OFI; Cooling; Road Nov 1 - Mar 31 Maintenance” quarter of 2014. C126000 Encana Corp 2007.01.25 2011.03.14 2016.12.31 Coldstream Creek, Salt 7 Murrary River 240 25,000 “OFI; Cooling; Whole Year Flow Through Water Licences: Consumptive Use Water Licences: Creek, Skunk Creek, Road Maintenance” The basin with the highest percentage of oil and gas m3 / yr m3 / yr Tepee Creek, & related water licence approval compared to mean 3 ZZ Creek (80570) Oil and Gas 16.2 million C126023 Encana Corp 2007.04.02 2011.02.18 2016.12.31 Komie Lake, South 2 Sahtaneh River 500 40,000 “OFI; Apr 1 - Oct 31 annual runoff was the Doig River at 2,321,800 m3 Hydropower Generation 124.6 billion Texaco Lake Mining Equipment; representing 0.72 per cent of mean annual flow. Hydropower Storage 39.5 billion Domestic & Waterworks 15.4 million Road Maintenance” Canadian Natural Resources Limited has four water Cooling 87.1 million Forestry 11.2 million South Texaco Lake 1 Lower Petitot Rvr 500 30,000 As above Apr 1 - Oct 31 licences from 1 point-of-diversion on the Doig River. Mining 8.2 million C126568 Talisman 2010.10.26 2011.07.25 2031.12.31 1 Peace Arm 10,000 3,650,000 OFI The licences have priority statuses from the 1960s. Fire Prevention 41.5 million Energy Inc Agriculture & Range 3.6 million C126877 Devon 1979.06.08 2011.12.09 2021.12.31 Charlie Lake 1 Lower Beatton Rvr 1,079 394,000 OFI Whole Year Conservation 16.6 million Canada Corp Road Maintenance 0.6 million C127223 Canbriam 2011.02.15 2012.01.12 2031.12.31 Williston Lake 1 Peace Arm 10,000 3,650,000 OFI Whole Year Energy Inc C127986 Nexen Inc 2017.12.31 North Tsea Lake Tsea River 2,500,000 Apr 1 - Oct 31 14 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2009.04.06 2012.03.11 1 60,000 OFI page 15 MAJOR and 2013 WATER WELL NUMBER COMPANY DEPTH OF WELL (m) EASTING NORTHING 3 TABLE 8: Sub-Basin Name WITHDRAWAL (m ) BEATTON RIVER WATER SOURCE WELLS REPORTED WATER SOURCE WELL Upper Beatton River 26846 Progress Energy Ltd 80 525002 6325277 17,667 WITHDRAWALS FOR 2013 Upper Beatton River 26848 Progress Energy Ltd 46 543348 6319308 3,170 Upper Beatton River 26849 Progress Energy Ltd 105 542509 6319625 3,287 Upper Beatton River 26864 Progress Energy Ltd 98 543626 6318982 14,316 Upper Beatton River 27413 Progress Energy Ltd 49 538320 6323888 18,665 The Commission has authority through OGAA for water production to the Commission monthly. Under In 2013, eight companies reported withdrawing Milligan Creek 25370 Canadian Natural Resources Ltd 91 643081 6303882 17,635 groundwater management and the regulation of water Section 72 of the Drilling and Production Regulation: 683,528 m3 of water from 31 water source wells (Table 1). Milligan Creek 25371 Canadian Natural Resources Ltd 152 641831 6305985 25,568 source wells. Water Source Wells are defined in the The OGC Water Management Basins with the greatest Milligan Creek 25373 Canadian Natural Resources Ltd 165 640056 6335748 35,786 Milligan Creek 26952 Dejour Energy Ltd 305 650759 6338188 6,953 Petroleum and Natural Gas Act as: “A permit holder must not operate groundwater extraction were Lower Sikanni Chief River Milligan Creek 27214 Dejour Energy Ltd 305 650809 6338207 26,536 (four wells, 171,201 m3) and Milligan Creek (six wells, Milligan Creek 27281 Dejour Energy Ltd 316 650723 6338251 19,487 “[A] hole in the ground a water source well in a manner 131,965 m3). Lower Beatton River 26962 Canadian Natural Resources Ltd 250 646044 6296253 14,621 Lower Beatton River 16332 Pengrowth Energy Corporation 140 637357 6262984 39,756 drilled to obtain water for that injuriously affects the use of Lower Beatton River 25556 Pengrowth Energy Corporation 135 626822 6259069 21,841 the water source for domestic or The location of active water source wells in 2013 in BEATTON TOTAL 265,287 the purpose of injecting relation to unconventional gas play trends is provided in HALFWAY RIVER agricultural purposes.” Appendix 1 on page 23. Several companies’ wells were Cameron River 26240 Progress Energy Ltd 124 547270 6313457 800 water into an underground Cameron River 27142 Progress Energy Ltd 49 555758 6303639 3,547 formation in connection with outside the play trends. These companies include Ish Cameron River 27813 Progress Energy Ltd 500 555087 6304225 18,543 “A well permit holder must report Energy, Harvest Operations and Dejour Energy. They HALFWAY TOTAL 22,890 the production of petroleum or inject water into the subsurface for enhanced oil recovery. the quantity of water production The three companies withdrew 266,635 m3 of water from Hay River 12650 Harvest Operations Corp 116 666470 6508531 6,289 natural gas.” Hay River 12663 Harvest Operations Corp 263 666017 6508914 6,894 from a water source well to the water source wells (Table 6). Hay River 25318 Harvest Operations Corp 55 663881 6499732 67,104 All water source wells require a well authorization commission no later than 25 days Hay River 25319 Harvest Operations Corp 103 665729 6507088 44,590 from the Commission. A permit holder must measure The rest of the water produced from water source wells in HAY RIVER TOTAL 124,877 after the end of the month in which 3 KISKATINAW RIVER and record the quantity and rate of water produced 2013 (416,893 m ) was used for hydraulic fracturing. Lower Kiskatinaw River 7779 Shell Canada Ltd 1473 637696 6198391 220 from the permit holder’s water source well, and report the production occurred.” KISKATINAW RIVER TOTAL 220 The depths of the water source wells ranged from 46 PEACE RIVER to 2,600 metres (Table 7). The median depth was 135 Cache Creek 3164 Harvest Operations Corp 66 585296 6268197 25,033 Pouce Coupe River 23533 Tourmaline Oil Corp 2600 669073 6205390 8,160 metres. The majority of wells (64.5 per cent) were located DEPTH VOLUME OF WATER WITHDRAWN PEACE TOTAL 33,193 TABLE 7: OF WATER TOTAL in shallow formations of 20 metres to 200 metres depth, PETITOT RIVER 3 3 3 COMPARISON SOURCE WELL 0 - 10,000 m 10,000 - 100,000 m >100,000 m WELLS and were likely extracting fresh water (516,255 m3). Eight Sahdoanah River 14893 Ish Energy Ltd 232 628010 6568548 61,381 Sahdoanah River 17557 Ish Energy Ltd 255 627989 6568704 2,368 wells (25.8 per cent) were located at an intermediary OF WATER 20 - 200 m 5 15 0 20 Tsea River 25945 Nexen Inc 749 551298 6587792 2,111 SOURCE WELL 201 - 500 m 4 4 0 8 depth of 201 metres to 500 metres, and were likely PETITOT TOTAL 65,860 extracting a mix of brackish water and saline water SIKANNI CHIEF RIVER WITHDRAWALS >500 m 3 0 0 3 3 Lower Sikanni Chief River 11449 Canadian Natural Resources Ltd 92 628676 6379191 14,322 FOR 2013 (156,783 m ). Three water source wells (9.7 per cent) TOTAL WELLS 12 19 0 31 Lower Sikanni Chief River 11499 Canadian Natural Resources Ltd 96 628415 6379606 67,485 extracted deep, saline water from depths greater than 500 Lower Sikanni Chief River 11500 Canadian Natural Resources Ltd 183 628004 6379264 47,537 metres (10,490 m3). Lower Sikanni Chief River 14995 Canadian Natural Resources Ltd 104 628436 6380161 41,857 SIKANNI CHIEF RIVER 171,201 16 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY TOTAL 683,528 page 17 HYDRAULIC FRACTURING WATER SOURCES AND REPORTING HORN RIVER BASIN LIARD BASIN CORDOVA EMBAYMENT On Jan. 1, 2012 British Columbia implemented the Hydraulic fracturing operations In 2013, 31 companies used a total volume of In previous years, watersheds in the Horn River Basin had the mandatory disclosure of ingredients used in hydraulic 5,341,635 m3 of water to hydraulic fracture 433 wells highest volume of water injected for hydraulic fracturing. There It is against the law are closely monitored with related Fort Nelson fracturing fluids. The website FracFocus.ca was launched (Table 1 on page 8). were significantly fewer hydraulically fractured wells in the Horn in B.C. to dispose of to provide public access to information on fluids and well data reported to the Commission; River Basin in 2013 (18 wells) as compared to 2012 (50 wells). fluids that have been MONTNEY ingredients used for the hydraulic fracturing of individual protection of surface water and The OGC Management Basin with the highest total The total volume of water used in hydraulic fracturing dropped by natural gas wells, as well as information on the process volume of water used for hydraulic fracturing in 2013 was nearly one quarter from 2012 to 2013. used for hydraulic groundwater are key priorities in the of hydraulic fracturing and the total volumes of water the Tsea River, which is located in the Horn River Basin fracturing into the Fort St John injected into the subsurface. regulation of hydraulic fracturing. (Appendix 2, page 24), with 732,631 m3 used for hydraulic Approximately two-thirds of the water used for hydraulic fracturing fracturing of 10 wells. The next highest basins for in 2013 came from surface sources (rivers, lakes, water source environment. Dawson Creek hydraulic fracturing water use were the Kiwigana River dugouts). A further 31 per cent came from non-fresh water 3 FIGURE 2: SOURCES FOR ACQUISITION OF WATER USED FOR HYDRAULIC FRACTURING (668,623 m ; seven wells) located in the Horn River Basin sources, including flowback reuse, municipal waste water reuse, and the Cameron River (570,709 m3; 43 wells) which is and saline groundwater. The remaining seven per cent came from

s 8 s located in the north Montney. fresh water wells (Figure 2 on page 18).

s 8 WL SECTION 8

13.5% The amount of water used for hydraulic fracturing varies 2012 2013 WL considerably across northeast B.C., with the lowest use

WATER LICENCE NUMBER MEAN TOTAL WATER NUMBER MEAN TOTAL WATER

WSW - fresh - WSW 7.0% per well in the Heritage Basin of the Montney Play (south PLAY OF WELLS (m3/WELL) USE (m3) OF WELLS (m3/WELL) USE (m3) 0.8% WSW - fresh of the Peace River) and the highest use in the Horn WATER SOURCE WELLS - FRESH

River Basin (Table 9 on page 19). The varying water HORN RIVER BASIN 50 76,923 3,846,142 18 79,069 1,423,242 Kelowna WSW saline WSW WSW saline requirements are largely dependent on the geology of the 48.8% WATER SOURCE WELLS - SALINE MONTNEY - HERITAGE 205 6,684 1,370,235 206 8,356 1,721,239 15.0% formation being fractured.

MONTNEY - NORTH 136 10,053 1,367,177 197 10,907 2,148,703 Flowback Flowback VictoriaNTNEY FLOWBACK (ESTIMATION)

In 2013, the average water use was 8,356 m3/well LIARD BASIN 1 144 144 1 20,106 20,106

MW (206 wells) in the Heritage Basin, 10,907 m3/well (197 CORDOVA EMBAYMENT 15 36,739 551,080 0 0 MW MUNICIPAL WASTE (SHELL) 3

10.6% 4.3% wells) in the north Montney, 79,069 m /well (18 wells) in OTHER 12 221 2,651 11 2,577 28,345 PA/PW the Horn River Basin, and 20,106 m3/well (1 well) in the PRIVATE ACQUISITION / PRODUCED WATER TABLE 9: WATER USED FOR HYDRAULIC

PA/PW Liard Basin. There were no hydraulically fractured wells in TOTAL 419 17,034 7,137,429 433 12,336 5,341,635 FRACTURING IN 2012 AND 2013 the Cordova Basin.

18 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 19 COMMISSION INNOVATION NORTHEAST WATER TOOL (NEWT) WATER INFORMATION PORTAL

he Commission in partnership with BC Ministry he NorthEast Water Tool (NEWT) is a GIS-based and water licences issued pursuant to the T T of Forests, Lands and Natural Resource Operations, The water-related data and information hydrology decision-support tool developed by the Water Act, to quantify how much water is Geoscience BC and the Science & Community includes: Commission. It provides guidance on water availability already allocated. Environmental Knowledge (SCEK) Fund, has recently across northeast B.C., and supports the decision- developed a map-based Water Information Portal. • Streamflow information collected by the making process for water use approvals and licences. NEWT contains an Water Survey of Canada (and others, such The Ministry of Forests, Lands and Natural Resource This large repository of water monitoring information as the Horn River Basin Producers Group). Operations, Foundry Spatial Ltd. and Geoscience “environmental flow” assessment, used by Commission decision-makers was mostly BC partnered with the Commission on the project. It to ensure that all water allocation • Groundwater level observation well data. inaccessible and unknown to the public. The portal now became publically available for use in October 2012. decisions do not impact offers the public access to relevant water information • Climate information collected by and provides enhanced knowledge of a wide range of Environment Canada, Ministry of NEWT has an underlying hydrological information environmental flow needs. water-related data from northeast B.C. to interested Transportation and Highways (from road database, developed through a hydrology modelling parties. project, and is designed to query locations on rivers weather stations), Ministry of Forests, Lands The basic output from NEWT is guidance on or lakes throughout northeast B.C. to determine the and Natural Resource Operations (from fire natural water supply and water availability, The data is displayed with flexible charts and analytical monthly and annual average runoff at that location. weather stations), BC Hydro, and others. to assist decision-makers with water tools to assist users to understand and use the data for This hydrology data represents the 30-year average allocation determinations; it is just one piece a variety of purposes. • Surface water quality data collected (or “normal”) runoff. In addition, NEWT spatially of information that can be considered by a by government that is contained in the displays and queries all active Section 8 approvals Statutory Decision Maker in making a water Provincial Environmental Monitoring allocation determination. NEWT is publically System database. accessible online for any interested parties and • Groundwater quality data (from was acknowledged with a Premier’s Award for Northern Health, Ministry of Environment, innovation in 2013. and others). • Data collected as a permit requirement from the Commission, or through investigations (streamflow, water quality).

20 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 21 APPENDIX 1 MAP - ACTIVE WATER SOURCE WELLS IN 2013

GLOSSARY

Aquifer: An underground layer of permeable rock that can Hydrogeology: (hydro - meaning water, and - geology Stream: A natural watercourse or source of water supply, contain groundwater. meaning the study of the Earth) is the area of geology that whether usually containing water or not, and a lake, river, deals with the distribution and movement of groundwater in creek, spring, ravine, swamp and gulch. Basin Section 8: A Section 8 approval not for a specific the soil and rocks of the Earth’s crust (commonly in aquifers). point-of-diversion. Instead, it allows for withdrawals of up Water Act: The provincial legislation that establishes the to 45 m3/day, to a maximum of 5,000 m3/year, specific to a Hydrology: The study of the movement, distribution, and provincial government as the “owner” of the water. Rights to drainage basin. quality of water on Earth, including water resources and cycles, use the water are established under licences or approvals issued and environmental watershed sustainability. under the Act. Brackish or Briny Water: Water with a salinity level between fresh water and saline water. m3: A measure of volume - cubic metres; 1m x 1m x 1m; 1,000 Water Licence: The long-term authority to divert and use litres. surface water in accordance with the statutory requirements of Dugout (Water Source Dugout): A pit used as a source of the Water Act. water that has naturally accumulated (from snowmelt, rainfall, OGAA: The Oil and Gas Activities Act. or groundwater inflow). Water Source Wells: A hole in the ground drilled to obtain Points-of-Diversion: A location on the natural channel of a water for the purpose of injecting water into an underground Flowback Water: Water that returns to the surface after being stream where an applicant proposes, or a licensee is authorized, formation in connection with the production of petroleum or injected for hydraulic fracturing. to divert water from the stream. natural gas. Fresh Water: Water containing low concentrations of Produced Water: Water that flows to the surface as a by- dissolved salts that may be suitable for drinking (before or after product of oil and gas production. treatment). Runoff: The draining of water over a land surface. Groundwater: Water located beneath the Earth’s surface. Saline Water: Water containing a significant concentration of Groundwater Well: A well drilled for the purpose of obtaining dissolved salts that is non-potable (not safe for consumption). water. Section 8 Approval: A short-term water use approval issued Hydraulic Fracturing: The injection of liquid at high pressure under Section 8 of the Water Act for up to 24 months. into the subsurface to fracture rock for the purpose of extracting oil or gas.

22 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY

2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 23 APPENDIX 2 WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES, ORGANIZED BY OGC WATER MANAGEMENT BASIN, IN 2013 Page 1 of 5 SECTION 8 WATER USE APPROVALS OIL AND GAS RELATED NON OIL AND GAS WATER SOURCE HYDRAULIC BC OIL AND GAS COMMISSION WATER LICENCES WATER LICENCES - FLNRO SOURCE WELLS FRACTURING TOTAL VOLUME TOTAL VOLUME TOTAL VOLUME TOTAL NUMBER OF TOTAL APPROVED TOTAL WITHDRAWN NUMBER OF TOTAL LICENSED AS NUMBER OF TOTAL VOLUME MEAN TOTAL TOTAL APPROVED VOLUME AS % of VOLUME AS % OF LICENSED VOLUME % of MEAN LICENCED VOLUME LICENCED as ANNUAL VOLUME NUMBER VOLUME MAJOR and NUMBER WITHDRAWAL APPROVED MEAN WITHDRAWN MEAN WITHDRAWAL LICENSED ANNUAL WITHDRAWAL LICENCED % of MEAN RUNOFF OF WITHDRAWN OF INJECTED Sub-Basin Name LOCATIONS (m3) ANNUAL (m3) ANNUAL RUNOFF LOCATIONS (m3) RUNOFF LOCATIONS (m3) ANNUAL (m3) WELLS (m3) WELLS (m3) BEATTON RIVER (sub-basin of Peace River) Upper Beatton River 37 794,354 0.160% 190,412 0.040% 0 0 499,408,440 5 57,104 40 473,522 Middle Beatton River 22 60,541 4,526 0 0 249,152,995 0 1 4,723 Middle Beatton Total (incl. Upper Beatton) 59 854,895 0.114% 194,938 0.026% 0 0 0.000% 0 0 0.000% 748,561,435 Milligan Creek 17 271,326 0.140% 565 0.000% 0 0 191,536,686 6 131,965 1 0 Blueberry River 58 474,485 0.160% 15,091 0.010% 2 15,100 0.010% 37 151,376 0.050% 293,278,540 0 21 113,600 Doig River 7 50,022 0.020% 0 0.000% 1 2,321,800 0.719% 18 52,478 0.020% 323,069,523 0 0 Lower Beatton River 3 10,110 0 1 394,000 101 4,497,971 138,262,629 3 76,219 0 BEATTON TOTAL 144 1,660,837 0.098% 210,594 0.012% 4 2,730,900 0.161% 156 4,701,825 0.277% 1,694,708,813 14 265,287 63 591,845 HALFWAY RIVER (sub-basin of Peace River) Chowade River 0 0 0 327,027,527 0 0 Upper Halfway River 10 287,980 9,057 0 15 142,707 795,962,409 0 1 9,699 Upper Halfway Total (includes Chowade) 10 287,980 0.026% 9,057 0.001% 0 0 0.000% 15 142,707 0.013% 1,122,989,936 Graham River 5 1,213,475 0.140% 95,774 0.010% 0 4 3,319 0.000% 860,627,172 0 0 Cameron River 23 777,386 0.350% 203,951 0.090% 0 3 7,467 0.000% 223,679,567 3 22,890 43 570,709 Lower Halfway River 28 1,955,204 33,331 0 26 1,040,751 151,526,991 0 18 241,969 HALFWAY TOTAL 66 4,234,044 0.179% 342,113 0.015% 0 0 0.000% 48 1,194,243 0.051% 2,358,823,666 3 22,890 62 822,377 MOBERLY RIVER (sub-basin of Peace River) Moberly River 0 0 21 83,165 0.020% 391,714,995 0 0 MOBERLY TOTAL 0 0 0.000% 0 0.000% 0 0 0.000% 21 83,165 0.020% 391,714,995 0 0 0 0 PINE RIVER (sub-basin of Peace River) Burnt River 3 5,770 0.000% 52 0.000% 0 5 35,038 0.000% 737,930,022 0 0 Sukunka River 7 6,172 1,864 0 11 121,502 1,047,282,572 0 0 Sukunka River Total (includes Burnt) 10 11,942 0.001% 1,916 0.000% 0 0 0.000% 16 156,540 0.009% 1,785,212,594 Upper Pine River 3 1,500 0.000% 384 0.000% 0 29 2,455,557 0.170% 1,466,884,035 0 0 Murray River 41 584,739 0.020% 28,973 0.000% 8 33,500 0.000% 85 28,382,851 1.050% 2,698,285,017 0 3 22,654 Lower Pine River 40 535,003 292,353 0 36 5,576,562 137,619,889 0 67 552,323 PINE TOTAL 94 1,133,184 0.019% 323,626 0.005% 8 33,500 0.001% 166 36,571,509 0.601% 6,088,001,535 0 0 70 574,977 WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES, ORGANIZED BY OGC WATER MANAGEMENT BASIN, IN 2013 Page 2 of 5

SECTION 8 WATER USE APPROVALS OIL AND GAS RELATED NON OIL AND GAS WATER SOURCE HYDRAULIC BC OIL AND GAS COMMISSION WATER LICENCES WATER LICENCES - FLNRO SOURCE WELLS FRACTURING TOTAL VOLUME TOTAL VOLUME TOTAL VOLUME TOTAL NUMBER OF TOTAL APPROVED TOTAL WITHDRAWN NUMBER OF TOTAL LICENSED AS NUMBER OF TOTAL VOLUME MEAN TOTAL TOTAL APPROVED VOLUME AS % of VOLUME AS % OF LICENSED VOLUME % OF MEAN LICENCED VOLUME LICENCED as ANNUAL VOLUME NUMBER VOLUME MAJOR and NUMBER WITHDRAWAL APPROVED MEAN WITHDRAWN MEAN WITHDRAWAL LICENSED ANNUAL WITHDRAWAL LICENCED % of MEAN RUNOFF OF WITHDRAWN OF INJECTED Sub-Basin Name LOCATIONS (m3) ANNUAL (m3) ANNUAL RUNOFF LOCATIONS (m3) RUNOFF LOCATIONS (m3) ANNUAL (m3) WELLS (m3) WELLS (m3)

KISKATINAW RIVER (sub-basin of Peace River) West Kiskatinaw River 17 231,000 0.200% 57,293 0.050% 0 0 117,515,115 0 3 54,892 East Kiskatinaw River 82 744,700 0.710% 45,934 0.040% 0 10 4,530,497 4.300% 105,452,962 0 3 11,320 Middle Kiskatinaw River 27 230,336 11,385 0 23 2,060,382 56,347,972 0 8 123,702 Middle Kiskatinaw Total (incl. West & East) 126 1,206,036 0.432% 114,612 0.041% 0 0 0.000% 33 6,590,879 2.360% 279,316,049 Lower Kiskatinaw River 9 279,772 4,386 1 400,000 43 1,154,815 89,659,847 1 220 62 480,537 KISKATINAW TOTAL 135 1,485,808 0.403% 118,998 0.032% 1 400,000 0.108% 76 7,745,694 2.099% 368,975,896 1 220 76 670,451 PEACE RIVER Peace Arm 0 2 7,300,000 N/A 15 84,004 N/A N/A 0 0 Upper Peace River 0 0 56 2,654,858 0.010% 36,423,413,429 0 4 55,579 Lynx Creek 1 1,500 0.000% 0 0.000% 0 9 259,970 0.850% 30,436,635 0 3 35,109 Farrell Creek 5 9,000 0.010% 3,060 0.000% 0 16 7,466 0.010% 91,018,843 0 21 227,189 Cache Creek 4 1,940 0.000% 364 0.000% 2 185,000 0.250% 12 1,794,026 2.400% 74,603,546 1 25,033 9 1,623 Pouce Coupe River 2 6,400 0.000% 0 0.000% 1 2,000 0.000% 104 2,942,189 1.150% 255,686,202 1 8,160 41 350,956 Lower Peace River 3 550,000 0 2 2,717,469 62 123,642,746 114,470,012 0 17 117,627 PEACE TOTAL (incl. Kisk/Pine/Moberly/Half/Beatton) 454 9,082,713 0.019% 998,755 0.002% 20 13,368,869 0.028% 741 181,681,695 0.379% 47,891,853,572 20 321,590 366 3,447,733 SMOKY RIVER Smoky River 63 533,800 0.020% 2,920 0.000% 3 27,500 0.000% 15 69,944 0.000% 2,669,506,123 0 2 7,228 SMOKY TOTAL 63 533,800 0.020% 2,920 0.000% 3 27,500 0.000% 15 69,944 0.000% 2,669,506,123 0 0 2 7,228 MUSKWA RIVER (sub-basin of ) Upper Muskwa River 0 0 0 1,725,201,511 0 0 Middle Muskwa River 0 0 1 830 1,973,711,816 0 0 Middle Muskwa Total (incl. Upper Muskwa) 0 0 0.000% 0 0.000% 0 0 0.000% 1 830 0.000% 3,698,913,327 Lower Muskwa River 0 0 10 1,839,377 0.280% 646,841,560 0 0 MUSKWA TOTAL 0 0 0.000% 0 0.000% 0 0 0.000% 11 1,840,207 0.042% 4,345,754,887 0 0 0 0

Continued on next page 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 25 WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES, ORGANIZED BY OGC WATER MANAGEMENT BASIN, IN 2013 Page 3 of 5 SECTION 8 WATER USE APPROVALS OIL AND GAS RELATED NON OIL AND GAS WATER SOURCE HYDRAULIC BC OIL AND GAS COMMISSION WATER LICENCES WATER LICENCES - FLNRO SOURCE WELLS FRACTURING TOTAL VOLUME TOTAL VOLUME TOTAL VOLUME TOTAL NUMBER OF TOTAL APPROVED TOTAL WITHDRAWN NUMBER OF TOTAL LICENSED AS NUMBER OF TOTAL VOLUME MEAN TOTAL TOTAL APPROVED VOLUME AS % of VOLUME AS % OF LICENSED VOLUME % of MEAN LICENCED VOLUME LICENCED as ANNUAL VOLUME NUMBER VOLUME MAJOR and NUMBER WITHDRAWAL APPROVED MEAN WITHDRAWN MEAN WITHDRAWAL LICENSED ANNUAL WITHDRAWAL LICENCED % of MEAN RUNOFF OF WITHDRAWN OF INJECTED Sub-Basin Name LOCATIONS (m3) ANNUAL (m3) ANNUAL RUNOFF LOCATIONS (m3) RUNOFF LOCATIONS (m3) ANNUAL (m3) WELLS (m3) WELLS (m3)

PROPHET RIVER (sub-basin of Fort Nelson River) Upper Prophet River 5 65,357 0.000% 24,502 0.000% 0 0 1,470,271,289 0 9 89,157 Middle Prophet River 9 12,411 5,208 0 0 621,428,680 0 0 Middle Prophet Total (incl. Upper Prophet) 14 77,768 0.004% 29,710 0.001% 0 0 0.000% 0 0 0.000% 2,091,699,969 Lower Prophet River 5 19,196 1,045 0 0 272,262,427 0 0 PROPHET TOTAL 19 96,964 0.004% 30,755 0.001% 0 0 0.000% 0 0 0.000% 2,363,962,396 0 0 9 89,157 SIKANNI CHIEF RIVER (sub-basin of Fort Nelson R.) Upper Sikanni Chief River 6 892,577 0.110% 708,387 0.088% 0 2 64,488 0.008% 807,771,692 0 5 69,317 Middle Sikanni Chief River 37 357,197 19,597 0 2 5,808 949,755,794 0 22 256,507 Middle Sikanni Chief Total (incl. Upper Sikanni Chief) 43 1,249,774 0.071% 727,984 0.041% 0 0 0.000% 4 70,296 0.004% 1,757,527,486 325,824 Lower Sikanni Chief 42 111,884 2,882 0 0 875,678,142 4 171,201 0 SIKANNI CHIEF TOTAL 85 1,361,658 0.052% 730,866 0.028% 0 0 0.000% 4 70,295 0.003% 2,633,205,628 4 171,201 27 325,824 FORT NELSON RIVER Kahntah River 65 244,654 0.060% 20,733 0.010% 0 0 400,582,903 0 0 Fontas River 36 184,032 18,719 0 0 591,531,903 0 0 Fontas Total (includes Kahntah) 101 428,686 0.043% 39,452 0.004% 0 0 0.000% 0 0 0.000% 992,114,806 Klua River 8 34,000 0.010% 2,894 0.000% 0 0 402,135,448 0 0 Upper Fort Nelson River 15 67,729 4,563 0 0 276,181,026 0 6 9,459 Upper Fort Nelson Total (incl. Sikanni Chief Total, Kahntah, Fontas, Klua) 209 1,892,073 0.044% 777,775 0.018% 0 0 0.000% 4 70,295 0.002% 4,303,636,908 Snake River 21 84,550 0.030% 9,802 0.000% 0 0 310,763,522 0 0 Sahtaneh River 57 461,239 0.100% 9,050 0.000% 2 40,000 0.010% 0 474,904,729 0 0 Middle Fort Nelson River 56 2,055,200 729,328 0 7 1,001,848 515,348,901 0 0 Mid Ft Nelson Total (incl. Upper Ft. Nelson total, Muskwa Total, Prophet Total, Snake, Sahtaneh) 362 4,590,026 0.037% 1,556,710 0.013% 2 40,000 0.000% 22 2,912,350 0.024% 12,314,371,343 Kiwigana River 52 1,058,305 0.240% 4,449 0.000% 6 142,500 0.030% 0 441,657,543 0 7 668,623 Lower Fort Nelson River 27 363,659 32,734 0 0 312,768,938 0 FORT NELSON TOTAL 441 6,011,990 0.046% 1,593,893 0.012% 8 182,500 0.001% 22 2,912,350 0.022% 13,068,797,824 0 0 49 1,093,063 WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES, ORGANIZED BY OGC WATER MANAGEMENT BASIN, IN 2013 Page 4 of 5

SECTION 8 WATER USE APPROVALS OIL AND GAS RELATED NON OIL AND GAS WATER SOURCE HYDRAULIC BC OIL AND GAS COMMISSION WATER LICENCES WATER LICENCES - FLNRO SOURCE WELLS FRACTURING

TOTAL VOLUME TOTAL VOLUME TOTAL VOLUME TOTAL NUMBER OF TOTAL APPROVED TOTAL WITHDRAWN NUMBER OF TOTAL LICENSED AS NUMBER OF TOTAL VOLUME MEAN TOTAL TOTAL APPROVED VOLUME AS % of VOLUME AS % OF LICENSED VOLUME % of MEAN LICENCED VOLUME LICENCED as ANNUAL VOLUME NUMBER VOLUME MAJOR and NUMBER WITHDRAWAL APPROVED MEAN WITHDRAWN MEAN WITHDRAWAL LICENSED ANNUAL WITHDRAWAL LICENCED % of MEAN RUNOFF OF WITHDRAWN OF INJECTED Sub-Basin Name LOCATIONS (m3) ANNUAL (m3) ANNUAL RUNOFF LOCATIONS (m3) RUNOFF LOCATIONS (m3) ANNUAL (m3) WELLS (m3) WELLS (m3) Muncho River 0 0 551,551,360 Upper Liard River 0 0 3 7,190 0.000% 33,125,817,465 0 0 Upper Liard Total (incl. Muncho) 0 0 0.000% 0 0.000% 0 0 0.000% 3 7,190 0.000% 33,677,368,825 0 0 0 0 Grayling River 0 0 0 630,833,914 0 0 Upper Toad River 0 0 0 1,521,055,576 0 0 Racing River 0 0 0 1,488,336,681 0 0 Lower Toad River 0 0 0 419,472,722 0 0 0 0 0 10,862,659,426 0 0 Middle Liard River 0 0 0 463,652,312 0 0 Middle Liard (incl. Upper Liard Total, Grayling, Upper Toad, Racing, Lower Toad, Beaver) 0 0 0.000% 0 0.000% 0 0 0.000% 3 7,190 0.000% 49,063,379,456 0 0 0 0 Capot-Blanc Creek 23 447,708 0.240% 4,203 0.000% 0 0 183,879,851 0 1 20,106 Dunedin RIver 38 207,949 0.030% 1,908 0.000% 0 0 820,464,167 0 0 Lower Liard River 29 723,600 119,578 0 0 1,236,634,664 0 0 LIARD TOTAL (incl. Fort Nelson) 531 7,391,247 0.011% 1,719,582 0.003% 8 182,500 0.000% 25 2,919,540 0.005% 64,373,155,962 0 0 50 1,113,169 PETITOT RIVER Sahdoanah River 71 606,395 0.240% 5,814 0.000% 0 1 830 0.000% 252,625,362 2 63,749 0 Upper Petitot River 81 245,716 0.020% 23,816 0.000% 0 0 1,476,579,488 0 0 Tsea River 28 115,902 0.030% 29,891 0.010% 4 2,590,976 0.600% 0 434,062,484 1 2,111 10 732,631 Middle Petitot River 19 55,050 13,832 2 26,666 0 698,562,753 0 0 Middle Petitot Total (incl. Sahdoanah, Upper Petitot, Tsea) 199 1,023,063 0.036% 73,353 0.003% 6 2,617,642 0.091% 1 830 0.000% 2,861,830,087 Lower Petitot River 36 619,534 23,583 1 30,000 0 904,314,069 0 1 21,988 PETITOT TOTAL 235 1,642,596 0.044% 96,936 0.003% 7 2,647,642 0.070% 1 830 0.000% 3,766,144,156 3 65,860 11 754,619

Continued on next page 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 27 WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES, ORGANIZED BY OGC WATER MANAGEMENT BASIN, IN 2013 Page 5 of 5

SECTION 8 WATER USE APPROVALS OIL AND GAS RELATED NON OIL AND GAS WATER SOURCE HYDRAULIC BC OIL AND GAS COMMISSION WATER LICENCES WATER LICENCES - FLNRO SOURCE WELLS FRACTURING TOTAL VOLUME TOTAL VOLUME TOTAL VOLUME TOTAL NUMBER OF TOTAL APPROVED TOTAL WITHDRAWN NUMBER OF TOTAL LICENSED AS NUMBER OF TOTAL VOLUME MEAN TOTAL TOTAL APPROVED VOLUME AS % of VOLUME AS % OF LICENSED VOLUME % of MEAN LICENCED VOLUME LICENCED as ANNUAL VOLUME NUMBER VOLUME MAJOR and NUMBER WITHDRAWAL APPROVED MEAN WITHDRAWN MEAN WITHDRAWAL LICENSED ANNUAL WITHDRAWAL LICENCED % of MEAN RUNOFF OF WITHDRAWN OF INJECTED Sub-Basin Name LOCATIONS (m3) ANNUAL (m3) ANNUAL RUNOFF LOCATIONS (m3) RUNOFF LOCATIONS (m3) ANNUAL (m3) WELLS (m3) WELLS (m3)

HAY RIVER Upper Kotcho River 19 55,007 0.020% 2,034 0.000% 0 0 311,519,217 0 0 Kyklo River 29 179,016 0.120% 5,574 0.000% 0 1 5,808 0.000% 145,897,691 0 0 Shekilie River 42 104,079 0.020% 4,392 0.000% 0 0 450,747,494 0 3 1,369 Lower Kotcho River 11 44,400 441 0 0 311,519,217 0 0 Lower Kotcho Total (includes Upper Kotcho, Kyklo, Shekilie) 101 382,502 0.031% 12,441 0.001% 0 0 0.000% 1 5,808 0.000% 1,219,683,619 Hay River 33 224,806 63,089 0 0 538,672,352 4 124,877 1 17,517 HAY TOTAL 134 607,308 0.035% 75,530 0.004% 0 0 0.000% 1 5,808 0.000% 1,758,355,971 4 124,877 4 18,886 CHINCHAGA RIVER Chinchaga River 31 157,212 0.140% 3,114 0.000% 0 0 109,492,680 0 0 CHINCHAGA TOTAL 31 157,212 0.140% 3,114 0.000% 0 0 0.000% 0 0 0.000% 109,492,680 0 0 0 0 OTHER (outside Northeast B.C.) 41 8,965 28 0 0 0 0 0 0 0 0 0

GRAND TOTAL 1,489 19,423,842 0.016% 2,896,865 0.002% 38 16,226,511 0.013% 783 184,677,818 0.160% 120,568,508,464 31 683,528 433 5,341,635

2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 28